According to the press release, the transactions align with Zip's global expansion plans and the rapidly accelerating global BNPL opportunity. As demonstrated through the acquisition of QuadPay, where annual transactions have soared by over 200% post acquisition, Zip is building its playbook in successfully identifying, completing, and integrating strategic acquisitions.
Therefore, Twisto and Spotii are integrated into Zip’s global Single Merchant Interface (SMI), which provides merchants instant access to 11 countries across five continents. Following Zip’s successful expansion to the US and the UK, the company is now extending its BNPL operations to Europe and the Middle East. These strategic transactions will enable Zip to respond to the increased demand from merchants for a single global BNPL solution across multiple markets with a consistent global service quality.
Zip has adopted a similar approach to Quadpay, which proved to be highly successful. By initially making low-risk minority investments, Zip is well placed to validate cultural fit and management alignment, stress test the business plan and identify synergies, and plan for integration.
Furthermore, Zip expects to complete the Spotii acquisition in Q3 CY21 and the Twisto acquisition in Q4 CY21. The acquisitions have a combined enterprise value of around USD 180 million with transaction consideration of almost USD 160 million, reflecting Zip’s current equity interests in both companies, to be funded with either cash and/or shares at Zip’s discretion.
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